FICO 8 - More consumer friendly?

[CS800]

From another article, I quote:

3 victories for consumers

Not all the news is bad. FICO 08 offers some definite improvements for consumers in several areas, including:

• Collections. The new formula ignores small collection accounts in which the original debt was less than $100. This is a big victory for consumers and one I've advocated for years, because niggling little debts -- created by unpaid library fines, forgotten parking tickets or a small medical bill that slipped through the insurance cracks -- had an outsize impact on people's scores. -- That's great news !

• Credit missteps. Fair Isaac says the new version is less punishing to those who have had a serious credit setback, such as a charge-off or a repossession, as long as their other active credit accounts are all in good standing. -- Another great change !!

• Authorized users. Fair Isaac initially said FICO 08 would combat potential fraud by ignoring any "authorized-user" accounts in a borrower's credit report. After a big consumer outcry and potential credit fairness issues, Fair Isaac backed off and decided some authorized-user information would be included. --AU's have long enjoyed that benefit while in rebuilding mode or for AAoA purposes. This one might not be very well received by many. Although it still counts towards the FICO scoring, it's power has somehow diminished.

[Anonymous]

Is FICO 8 going to become the most commonly used scoring system among creditors/lenders? 

(Edited to make sense!)

[CS800]

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@Anonymous wrote:

If FICO 8 going to become the most commonly used scoring system among creditors/lenders? 

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Eventually lenders will move towards the FICO 8. Currently most lenders are still relying on the FICO Classic.

[fused]

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@Anonymous wrote:

If FICO 8 going to become the most commonly used scoring system among creditors/lenders? 

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Maybe, but not any time soon.

[ADARPegasus]

From what i was told by the My Fico.com rep Fico 8 does include authorized users..

[CS800]

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@Jonbuck06 wrote:

From what i was told by the My Fico.com rep Fico 8 does include authorized users..

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But it will not have as much power as it used to have. What does this mean? I don't know

Here's a good read:

http://www.la.bbb.org/GIReport.aspx?NewsID=177

[pizzadude]

Thanks for posting the link to the article !  The main point on piggybacking that I read is FICO 08 restricts piggybacking to only the card holder's family.

So it sounds like AU accounts which don't belong to a relative are not going to be factored into your score.

[llecs]

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@pizzadude wrote:

Thanks for posting the link to the article !  The main point on piggybacking that I read is FICO 08 restricts piggybacking to only the card holder's family.

So it sounds like AU accounts which don't belong to a relative are not going to be factored into your score.

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FICO was aiming for that, but completely backed away. AUs factor into any FICO08 versions just equally as if you were the account owner, regardless of affiliation to that owner. IIRC, they were worried about the Equal Credit Opportunity Act and they interpreted the law as it was illegal to restrict AU access. VantageScore and other FAKOs block AUs from scoring though.

[Ms-Kato]

Will myFICO be upgrading to FICO 8 in the future or are they currently using the newer version ?

[llecs]

MyFICO is using TU98 for your TU FICO (created in 1998) and is using Beacon 5.0 for your EQ FICO (created in 2005). For EQ, most lenders are still using the same version on here, though they can switch to the FICO8 version if they wanted to (aka Beacon 9.0). For TU, most lenders use a version from 2004 called TU04, and aren't opting to switch to the FICO8 version. These statements apply generally to mortgage lending. Of course, there could be a seperate FICO version used in CC approvals, car approvals, etc.

ETA....as someone who recently went through the mortgage process, my hope for others would be that they keep EQ Beacon 5.0 at least. It would be cool if they upgrades TU98 to TU04. I hope they don't switch both to the FICO8 version because nobody's score would match the one in here.